ethics business test

Ethics

A code of moral principles that sets standards for what is "good" or "bad" and "right" or "wrong" in a person's conduct

Ethical Behaviour

Conduct that is accepted as "good" and "right" according to the governing moral code

Values

The underlying beliefs and attitudes that help determine an individual's behaviour

Terminal Values

Preferences regarding desired ends or life-long goals, such as self-respect, family security, and happiness

Instrumental Values

Preferences regarding the means to accomplish desired ends, such as being honest, ambitious, courageous, or disciplined

Utilitarian View:

An ethical perspective that seeks to deliver the greatest good for the greatest number of people

Individualism View

An ethical perspective where the primary commitment is to promote one's own long-term self-interests

Moral Rights View:

An ethical perspective that focuses on respecting and protecting the fundamental rights of all human beings

Justice View

An ethical perspective based on the belief that ethical decisions treat people impartially and fairly according to legal rules and standards

Procedural Justice

Concerns the degree to which policies and rules are fairly applied to everyone

Distributive Justice

Concerns the equal treatment of all people regardless of personal characteristics like race or gender

Interactional Justice

Concerns the degree to which people are treated with dignity and respect

Whistleblower:

A person who exposes the misdeeds of others in an organization to preserve ethical standards or protect against harmful, wasteful, or illegal acts

Classical View

The perspective that management’s only social responsibility is to maximize profits for owners and shareholders

Socioeconomic View:

The perspective that management must be concerned with broader social welfare and not just corporate profits

Cultural Relativism

The belief that ethical behaviour is always determined by its cultural context, often summarized by the phrase "When in Rome, do as the Romans do"

Universalism

The belief that certain absolute truths and ethical standards apply everywhere across all cultures

Ethical Imperialism

An attempt to externally impose one’s own ethical standards on other cultures

Virtuous Circle

A situation where corporate social responsibility leads to improved financial performance, which in turn leads to even more socially responsible actions in the future

Codes of Ethical Conduct

A formal, written statement of an organization's values and ethical principles that serves as a guide for behaviour in situations susceptible to ethical dilemmas

Ethical Dilemmas

Situations that require a choice regarding a course of action that may offer potential personal or organizational benefit but may also be considered unethical

Checklist for Dealing with Ethical Dilemmas:

1. Recognize the dilemma.

2. Get the facts.

3. Identify your options.

4. Test each option: Is it legal? Is it right? Is it beneficial?.

5. Decide which option to follow.

6. Double-check with "spotlight" questions: How would I feel if my family found out? How would I feel if this were reported in the news?.

7. Take action

Rationalizations for Unethical Behaviour:

Common ways people justify misconduct include convincing themselves that the behaviour is not actually illegal, is in everyone's best interest, that no one will find out, or that the organization will protect them

Risks Faced by Whistleblowers:

Whistleblowers often face significant risks including being fired, having their career progress impaired, or being ostracized by co-workers

Social Entrepreneurship

A form of entrepreneurship that seeks novel ways to solve pressing social problems, such as providing housing for the homeless or bringing technology to poor families

Social Responsibility Audit

A systematic assessment at regular intervals that reports on an organization’s accomplishments in various areas of Corporate Social Responsibility (CSR

CSR

(Corporate Social Responsibility): The obligation of an organization to act in ways that serve both its own interests and the interests of society at large, including economic, legal, ethical, and discretionary responsibilities

Stakeholders

The persons, groups, and organizations, such as employees, customers, suppliers, and local communities, who are directly affected by an organization's behaviour and hold a stake in its performance

Social Responsibility Strategies:Obstructionist

Meets only economic responsibilities and fights social demands

Social Responsibility Strategies: Defensive

Meets economic and legal responsibilities by doing the minimum legally required

Social Responsibility Strategies: Accommodative

Meets economic, legal, and ethical responsibilities by doing the minimum ethically required

Social Responsibility Strategies: Proactive

Meets economic, legal, ethical, and discretionary responsibilities by taking leadership in social initiatives